The bond-related formulas and functions in the previous chapters assume that every period is the same length. For example, that coupon payments occur every three, six, or twelve months. Some bonds have irregular first or last periods, where the payment dates don’t fit any of those patterns. When you want to calculate the price of a bond with an odd first period, use the ODDFPRICE function.
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- Exercise Files
- [Voiceover] The bond related formulas and functions…in the previous chapters assumed that every period…is the same length,…for example, that coupon payments occur every…three, six or 12 months.…Some bonds do have irregular first or last periods…where the payment dates don't fit any of those patterns.…So Excel includes a set of functions you can use…to evaluate those securities.…In this movie, I will show you how to calculate the price…of a security with an odd first period.…My sample file is OddFirstPrice_06_01,…and you can find it in the chapter six folder…of the Exercise Files collection.…
We need to know a fair bit of information…to evaluate those types of securities,…so I'll go through that right now.…First is a settlement date, and that is the date…that you actually take possession of the security.…Next is the maturity date and that's the date that…the bond's principal and accumulated interest will come due.…Next is the issue date, that's the date the bond was created…and it could be different from the settlement date…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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